Why doun't satellites fall from the sky?

Interestingly enough the sattelites are doing their level best at falling from the sky. The whole idea is that at orbital velocity the objects move forward fast enough that they continously miss the Earth as they fall down.

In the ideal case satellites are in orbit. This means that they circle the Earth at a specific speed and a specific height. Because satellites aren't in Earth's atmosphere nothing slows them down. If they did slow down it would reduce the height they orbit at. If the height were reduced they would encounter thicker air which would slow them down more, which would lower their height more. This cycle would continue until they crashed.

In actuality the satellites do slow down very slowly because the air is not totally absent. Eventually all satellites will fall from the sky.